Pricing Perspective: Formalization Blueprint

3.3 Reconciling the two geometries

Theorem 29 Wasserstein balls sit inside energy balls

If \(W_2(\mu ,\nu )\le \delta \) then \(\mathcal E^2(\mu ,\nu )\le 2\delta \); the Wasserstein ball of radius \(\delta \) is therefore contained in the energy-distance ball of radius \(2\delta \). The inclusion is one-directional, and that direction is the pivot’s justification: a \(W_2\) hypothesis is the stronger one, so results proved under it apply to the energy ball, while the converse fails. This node belongs with the trunk rather than with this chapter.

Proof

Bound the energy distance by the transport cost through the negative-type representation.